The Victorian Automobile Chamber of Commerce says a lack of industry code compliance is costing businesses money.
Vehicle insurance companies in disputes with Victorian automotive businesses are causing productivity loss and raising costs for those operations.
VACC chief executive Geoff Gwilym says the sector’s insurers and crash repairers which were supposed to be united by the voluntary Motor Vehicle Insurance & Repair Industry Code of Conduct which needs better policing.
“The non-regulatory nature of the code in Victoria means that the purpose, principles and intent of the code stand in contrast to the direction and sustainability of vehicle body repair businesses and insurer- repairer relations,” Gwilym says in a Paint and Panel report.
“The lack of consistency in participants’ conduct, along with minimum code definitions and the continued use of confusing, ambiguous clauses … imposes a significant cost to small businesses, especially when it comes to resolving disputes with insurers,” Gwilym explains.
The VACC is asking the state government to install a regulated code with concise goals, to establish a healthier relationship between insurers and repairers for the benefit of consumers.
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